Local developer Omniyat has signed a AED500m ($136m) financing agreement with Ajman Bank for the development of a mixed-use project at Dubai Water Canal in Business Bay.

The total project cost is AED1.34bn and it is scheduled for completion by 2020. It will comprise a luxury hotel, residences and retail development. A statement from Omniyat said that the project will be officially announced in the first quarter of 2018.

The project by Omniyat, with Saudi Arabia’s Rashed al-Rashed Group and Jenina Real Estate Development Company – which is owned by Saud Kanoo.

Other developers are launching projects on the Dubai Water Canal. Earlier in December, Saudi Arabia’s Dar al-Arkan announced plans to build an AED800m tower on Dubai Water Canal in Business Bay known as I Love Florence.

Construction work on the 34-storey tower is expected to start in January 2018.

The consultants working on the project are the local VX Experts and the local La Casa Engineering Consultants. Italian luxury brand Roberto Cavalli is designing the interiors.

The Dubai Water Canal was completed in 2016. The project involved extending the waterway in Business Bay out the Gulf. The construction work comprised of excavation, quay walls, and bridges taking Sheikh Zayed Road, Jumeirah Beach Road, and Al-Wasl Road over the new waterway.